Posted By thestatedtruth.com on January 8, 2011

Economy on a roll, then a again maybe not…..Dave Rosenberg of Gluskin Sheff  discussed with Barron’s three key current takeaways that prompt current concern.

They are:

1. The fact that the workweek remains stuck at 34.3 hours for the third week in a row, and history tells us that hours are a forward-looking barometer of labor demand.

2. State and local governments, which comprise 15% of the total jobs pie, are “clearly in a major downsizing mode with 20,000 net job cuts last month.” He expects the trend to continue over the rest of the year “and, if the new Congress has its way, the same holds true for the federal government.”

3. Nothing is more important for the economy than personal income, and “here the work-based pay segment of the data was wholly disappointing, with average hourly earnings barely eking out a gain last month after a flat November.” Toss in the stagnant workweek, Dave says, along with the prospect “of a large gas-induced increase in the CPI for December—the consensus is 0.4%—and we’re talking about a possible contraction in real personal income to finish the year off.”

Categories: Commentary, Economy, National News, Wall Street
Tags: Economic Music